WTC Skyscraper Hit by Bond Woes

The troubled municipal-bond market could force the developer of a skyscraper at the World Trade Center to pay higher interest rates to investors in order to avoid a potential construction shutdown.

Developer Larry Silverstein and the Port Authority of New York and New Jersey, which owns the building site in lower Manhattan, are planning to sell $1.37 billion in tax-exempt bonds needed to continue work on the 1.8 million square-foot skyscraper known as Tower 4. After being plagued by years of delays from political infighting and financial disputes, the building has risen 19 stories and is on track for completion at the end of 2013.

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